Brazilian oil-export tax a 'concerning' development,' says Shell chief - Reuters
Brazilian oil-export tax a 'concerning' development,' says Shell chief | Reuters
Brazilian oil-export tax a 'concerning' development,' says Shell chief
HOUSTON, May 1 (Reuters) - The head of oil major Shell Plc's (SHEL.L) Brazilian operations on Monday said a temporary oil-export tax established in March was a concerning development that could hurt the country's investment attractiveness.
Brazil's government in March said the temporary, four-month tax would compensate for its decision to partially maintain a tax exemption on fuels for consumers, and help meet the country’s fiscal targets.
"This is a concerning precedent, but hopefully a temporary and isolated one to keep Brazil as a competitive province in the long term," said Cristiano Pinto da Costa in remarks at the Offshore Technology Conference in Houston.
Brazil should not add "tax burden to an industry that is already exposed," he added. Shell has 17 floating platforms currently producing oil and gas in Brazil and is the largest producer in the country after state-controlled Petrobras.
Oil majors including Shell, TotalEnergies SE (TTEF.PA) and Equinor ASA (EQNR.OL) filed an injunction against the tax in March.
Our Standards: The Thomson Reuters Trust Principles.
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.